Offering MemorandumMary Alam, MBASenior Vice PresidentO: 415.358.2111/M: 415.297.5586malam@nainorcal.comCalDRE# 01927340

CJ BrillInvestment AdvisorO: 415.349.0147/M: 310.793.6069cjbrill@nainorcal.comCalDRE # 02073511

9237 Laguna Springs Drive, Elk Grove, CA 95758

BJ’s Restaurant & BrewhouseAbsolute NNN Ground Lease

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In Te

Offering Summary

Investment Highlights

Lease Absrtact & Tenant Overview

Location Overview

Demographics

Sales Comparables

Table of Contents

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Confidentiality & Disclosure

The information contained in the following Investment Summary is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from NAI

Northern California and should not be made available to any other person or entity without the written consent of Broker. This Investment Summary has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained

herein is not a substitute for a thorough due diligence investigation. Broker has not made any investigation, and makes no warranty or representation, with respect to the

income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the

presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of improvements thereon,

or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.

The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable; however, Broker has not verified, and will not verify, any of

the information contained herein, nor has Broker conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the

accuracy or completeness of the information provided. All potential purchasers must take appropriate measures to verify all the information set forth herein.

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Offering Summary

LOCATION

OFFERING SUMMARYPRICE

SIZE

YEAR BUILT

NET OPERATING INCOME

CAP RATE

LEASE TYPE

$9,180,000

7,697 SF

2006

$583,058*

6.35%

Absolute NNN Ground Lease

APN 116-1510-001

LOT SIZE 2.0 acres

ZONING Commercial

BJ’s Restaurant & Brewhouse 9237 Laguna Springs Drive

Elk Grove, CA 95758

Offering SummaryOffering Summary

* Includes percentage rent

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Investment HighlightsInvestment Highlights

NAI Northern California is pleased to present for sale this trophy BJ’s property located in Elk Grove’s dense retail

corridor just off Highway 99. The subject is leased to BJ’s Restaurants, Inc. a NASDAQ publicly traded company,

with a long term corporate NNN ground lease and has a strong track record of increasing store sales.

Located at the hard corner of the signalized intersection of Laguna Blvd and Laguna Springs Dr, the property is

right off highway 99 and benefits from high traffic counts and major national retailers nearby including The Home

Deport, TJ Maxx, Ross Dress for Less, Best Buy, Burlington, Grocery Outlet, Staples, McDonalds, In-N-Out. Sutter

Medical Center and Kaiser Permanente are less than one mile from the property. The property sales also benefit

from the presence of a Holiday Inn and a Hilton Garden Inn in the immediate area.

The property is located in Elk Grove, an affluent suburb of Sacramento, the State Capitol of California. The city

is know for attracting young millenial families with its amenities and clean suburban living and has experienced

staggering growth as a result.

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Investment HighlightsProperty Highlights

Property Highlights:

• Corporate Guaranteed absolute NNN Ground Lease

• Top performing location with increasing store sales

• Lease includes percentage rent plus rent Increases every five years

• Hard Corner of Laguna Blvd (48,571 VPD) and Laguna Springs Dr (13,796 VPD)

• Strong visibility and access from nearby Hwy 99 (133,390 cars per day)

• Major retail corridor in the immediate area with major national retailers such as Home Deport, TJ Maxx, Ross Dress for Less, Best Buy, Burlington, Grocery Outlet, Staples, McDonalds, In-N-Out, and more.

• Sutter Medical Center and Kaiser Permanente are less than one mile from the property.

• Two major hospitality properties nearby, the Hilton Garden Inn and the Holiday Inn

• Strong and affluent demographics- Approximately 140,000 people within a 3 mile radius and an average HH income above $98,000

• The City of Elk Grove has benefited from being one of the fastest growing cities in California with a strong appeal to millenials and their families. This family oriented suburb of Sacramento, California State Capitol, has experienced a staggering 13% population growth within 3 miles of the subject property between 2010-2019

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Lease AbstractLease AbstractLease Abstract

BJ’s Restaurant & Brewhouse

9237 Laguna Springs Dr, Elk Grove, CA 95758

Tenant Name BJ’s Restaurant & Brewhouse

Lease Guarantor BJ’s Restaruant, Inc. (Corporate)

Lease Type Absolute NNN Ground Lease

Commencement 6/5/06

Expiration 6/4/26

Original Lease Term 20 years

Lease Term Remaining 7 years

Options to Review 3, 5-year options

Rental Increases Every 5 years per CPI including every 5 years during the options period

Net Operating Income* $583,058.46

Roof Structure Tenant

Landlord Responsibility None

Right of Refusal None

All lease provisions to be independently verified by Buyer during the Due Dilligence Period.

* Includes Percentage Rent

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Tenant Overview

BJ’s Restaurants Inc. operates 202 restaurants as of December 2018 in 27 states and are

continuing to expand. Since 2010, they have opened 108 new locations. The first BJ’s was

opened in 1978 in Orange County, CA and was a pioneer of introducing the deep dish pizza to

the West Coast. The initial public offering of common stock occurred in 1996. Over the years,

they have expanded the BJ’s concept from its beginnings as a small pizzeria to a full service,

high energy casual dining restaurant with over 100 menu items. BJ’s prides themselves in

their craft and attention to detail. Guests come for their award-winning handcrafted beer, the

Southern California twist they’ve put on the Chicago-style pizza and for the Pizookies, their

world-renowned dessert.

• First Quarter 2019 total revenues grew 4.3% to $290.6 million compared to First Quarter

2018

• According to their 2018 Annual Report filed with the SEC by BJ’s Restaurants, Inc.,

targeted annual sales at mature stores are between $4.5 to $5.5 million, sales at this site are

consistently well above average.

• Tenant website: https://www.bjsrestaurants.com

• SEC Filing’s: https://bjsrestaurants.gcs-web.com

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Retail Map

Laguna Blvd. (48,571 VPD)

Laguna Springs Dr. (13,796 VPD)

Subject Property

Marketplace 99Shopping Center

Subject Property

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Retail Map

Subject Property

Laguna Springs Dr. (13,796 VPD)

Laguna Blvd. (48,571 VPD)

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Location Map

Subject Property

Great visibility from

Highway 99

22 minutes outside Downtown Sacramento

San Francisco Silicon Valley

Yosemite

Reno

Lake Tahoe

Sacramento

Napa & Sonoma

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Location

Sacramento’s retail vacancy rate reached an all time low to start 2019. Job growth has been strong this cycle and incomes are in line with the California median. Because of that, purchasing power here has been healthy. Similar to most Northern California markets, malls, shopping centers and food have dominated the retail footprint. The area’s relative affordability remains one of its biggest draws. Household growth continues to surpass the rate of new development and the population is forecasted to grow over the next five years. Residents from the Bay Area, Los Angeles and San Diego have shown

One of Sacramento’s most affluent submarkets located just south of the states capital, demand for Elk Grove retail is strong because of the abundant spending power and a fast growing population. Income notably outpaces the county average and the population has increased by a double digit percentage this decade. Elk Grove’s retail investment market has gotten off to a hot start this year. Within the year’s first three months, sales volume was already half of the cities historical average. The largest industry in Elk Grove is Health Care and Social Assistance with providers

Sacramento Region

City of Elk Grove

The subject is located in Laguna Pointe, the tenant participates in the centers maintenance management program on behalf of the offering’s fee owner. Taxes attribute to the land and improvements are paid directly to authorities by the tenant. Costs for common area maintenance are billed directly to the tenant by the centers managing party.

Laguna Pointe

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Area Analysis

• Synergistic surrounding tenant mix creates a point-of-destination location and satisfied daytime and evening customer demands

• Hard Corner of Laguna Blvd (48,571 VPD) and Laguna Springs Dr (13,796 VPD)

• The subject property is in the core of a vibrant retail trade area that includes tenants such as: The Home Deport, TJ Maxx, Ross Dress for Less, Best Buy, Burlington, Grocery Outlet, Staples, McDonalds, In-N-Out, McDonald’s, IHOP, Target, Chick-Fil-A, Burger King and more!

• Strong visibility and access from nearby Hwy 99 (133,390 cars per day)

• The Intersection of Laguna Blvd and Highway 99 is proximate to residential and commercial density and provides easy access to downtown Sacramento (13 miles)

Hight Density, High Traffic Location

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BJ’s Site Plan

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Demographics

Population 1 Mile 3 Miles 5 Miles

2024 Projection 18,875 165,371 309,880

2019 Estimate 17,919 156,367 294,722

2010 Census 16,231 137,960 270,121

Growth 2014-2024 5.34% 5.76% 5.14%

Growth 2010-2019 10.40% 13.34% 9.11%

2019 Population Hispanic Origin 3,970 33,231 68,717

2019 Population by Race:White 9,546 76,421 136,588

Black 2,254 20,780 41,640

Am. Indian & Alaskan 207 1,704 3.485

Asian 4,286 43,680 86,605

Hawaiian & Pacific Island 242 2,659 5,760

Other 1,384 11,124 20,644

U.S. Armed Forces: 0 148 218

Households:2024 Projection 6,319 52,259 95,747

2019 Estimate 5,996 59,249 90,879

2010 Census 5,406 42,413 82,089

Growth 2019 - 2024 5.39% 6.11% 5.36%

Growth 2010 - 2019 10.91% 16.12% 10.71%

Owner Occupied 4,098 34,861 62,195

Renter Occupied 1,898 14,388 28,684

2019 Average Household Income $90,318 $98,446 $93,007

2019 Median Household Income $74,283 $80,614 $73,924

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Traffic Count

Collection Street Cross StreetCross Street

Dist/DirTraffic Volume Count Year

Dist from Subject

Type

Laguna Blvd. Stockton Blvd. 0.01 SW 46,406 2015 0.03 MPSI...

Laguna Blvd. W. Stockton Blvd. 0.01 SW 38,791 2018 0.03 MPSI...

Laguna Blvd. Stockton Blvd. 0.04 NE 48,571 2015 0.08 MPSI...

Laguna Blvd. W. Stockton 0.04 NE 37,399 2018 0.08 MPSI...

Stockton Blvd. Laguna Blvd. 0.17 NW 14,463 2015 0.13 MPSI...

Stockton Blvd. Laguna Springs Dr. 0.07 SE 13,796 2018 0.13 MPSI...

W. Stockton Blvd. Wooded Brook Dr. 0.24 N 3,200 2012 0.28 AADT..

Laguna Blvd. Big Horn Blvd. 0.10 W 42,947 2018 0.30 MPSI...

E. Stockton Blvd. Bond Rd. 0.38 SE 8,000 2012 0.30 AADT...

Bond Rd. S. Sacramento Fwy. 0.12 W 133,390 2012 0.35 MPSI...

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Sales Comparables

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Sales Comparables

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Sales Comparables

Mary Alam, MBASenior Vice PresidentO: 415.358.2111/M: 415.297.5586malam@nainorcal.comCalDRE# 01927340

CJ BrillInvestment AdvisorO: 415.349.0147/M: 310.793.6069cjbrill@nainorcal.comCalDRE # 02073511

The Mary Alam Team